Fresh clashes erupted between Omani police and protesters on Monday, a day after police killed at least one as the turmoil rocking the Arab world reached the normally calm Gulf sultanate.

Hundreds of demonstrators stormed a police station in the key industrial area of Sohar, northwest of the capital Muscat, and police responded by firing tear gas.

U.S. Secretary of State Hillary Clinton urged the international community Monday to work together on further steps to end the crisis in Libya, adding that Washington was keeping all options on the table.

"We all need to work together on further steps to hold the Gadhafi government accountable, provide humanitarian assistance to those in need and support the Libyan people as they pursue a transition to democracy," she told the U.N. Human Rights Council.

The European Union on Monday agreed to slap an asset freeze and travel ban on Libyan leader Moammar Gadhafi and 25 members of his family and inner circle, the EU's Hungarian presidency said.

"The EU measures not only implement the resolution of the United Nations Security Council of February 26 but in addition impose autonomous sanctions", said Tamas Fellegi, national development minister of Hungary, which currently holds the rotating EU presidency.

Egypt on Monday slapped a ban on ousted president Hosni Mubarak and his family traveling abroad, and also imposed a freeze on their assets, judicial officials said.

Besides Mubarak, who resigned on February 11 following weeks of protests, the decision also applied for his wife Suzanne, his two sons Ala and Gamal, and their wives, according to the same source.

Iranian President Mahmoud Ahmadinejad said on Monday that weapons manufactured and delivered to "dictators" by the United States were killing protesters in uprisings around the Arab world.

The hardliner said that the United States and its allies must be blamed for imposing dictatorships on regional countries now in the grip of deadly revolts.

Israel's defense minister said Monday his country must look beyond the risks that might arise from the changes sweeping the Mideast and seek opportunities to move peacemaking forward — including possible peace talks with Syria.

Defense Minister Ehud Barak told Israel Radio that Syria appears to be signaling it might be willing to reach an accord.

Omani police shot dead two demonstrators on Sunday as the deadly wave of protests rocking the Arab world spread to the normally placid pro-Western sultanate, a security official said.

The protests in Sohar, more than 200 kilometers northwest of Muscat, prompted Sultan Qaboos to introduce swift appeasing measures, including the provision of jobs for 50,000 citizens and unemployment benefits.

Libyan strongman Moammar Gadhafi on Sunday dismissed U.N. sanctions as invalid and claimed calm had returned to Libya as the territories held by the opposition were surrounded.

In a rare statement to foreign media broadcast on Serbian television, Gadhafi also blamed al-Qaida extremists for the killings since the anti-regime protests began around February 15.

The United States said Sunday it was prepared to offer "any kind of assistance" to Libyans seeking to overthrow the regime of strongman Moammer Gadhafi as they set up a transitional body.

As forces opposed to the longest-serving Arab leader took control of several western Libyan towns, U.S. Secretary of State Hillary Clinton echoed the calls of world leaders, including President Barack Obama, for him to quit.

Tunisian Prime Minister Mohammed Ghannouchi resigned Sunday and was replaced by Beji Caid Essebsi, a former minister, after anti-government protests left five people dead over the weekend.

"I have decided to quit as prime minister," Ghannouchi told a news conference, saying that he thought carefully before taking the decision which was supported by his family.